NORTHBUD (NBUD:CSE) is already a late stage applicant at the "Confirmation of Readiness" stage for 25,000 square feet of indoor and 500,000 square feet of outdoor growing space, for the sole purpose of growing GMP pharma-grade cultivation and food-grade extracted inputs.
But Ryan Brown didn't get this far in the cannabis space by sitting still ... and he has made one hell of a great deal with the $20 MILLION acquisition of Eureka Vapor, a multi-state licensed operator in the USA. The acquisition is subject to typical closing and due diligence but Ryan has a close relationship with the CEO and is confident it will close.
If and when it does close, Eureka will bring about $11.5 million in revenue at a 16% profit margin, which will be immediately accretive to the bottom line of NORTHBUD. Accretive is actually an understatement.
I also love this acquisition because of its' terms, which shows the confidence that both sides have in each other. For example, the Eureka team can earn an extra $25 million if they hit certain milestones. That says a lot about how Eureka may grown once it is a part of NORTHBUD.
On the flipside, the Eureka group only gets 10% of their shares on closing, with the rest dripped out over the next 24 months. That says a lot about the confidence Eureka has in NORTHBUD.
Find out more about NORTHBUD and this great deal in this interview with Ryan, who has already made a name for himself and is now on his way to growing that success, pun intended.